Combination payment card and methods thereof

ABSTRACT

Systems and methods for processing payment transactions using combination payment cards. The combination payment card is associated with an open-loop account and one or more closed-loop accounts. Transaction information is received from a point-of-sale device. At least one of the closed-loop and open-loop account is debited.

CROSS-REFERENCE TO RELATED APPLICATION

This application is a continuation of prior U.S. patent application Ser.No. 13/599,538, filed Aug. 30, 2012 entitled “SYSTEMS, METHODS ANDAPPARATUS FOR PAYMENT PROCESSING,” which is incorporated herein byreference in its entirety.

TECHNICAL FIELD

This application relates generally to financial transaction processing,and more particularly, to the use and processing of closed-loop cardsand open-loop cards.

BACKGROUND

Prepaid cards are becoming increasingly popular. Such prepaid cards mayalso be referred to as a “gift card” or a “stored value card.” Thesecards can often be purchased at a retail location, or a financialinstitution, for a specified amount, e.g., twenty dollars, or for anon-denominated amount whereby the cardholder or other party candesignate the exact funding amount. Prepaid cards can be associated withopen-loop type accounts or closed-loop type accounts. Open-loop typecards may be redeemed at many retail locations, for example, whereverthe prepaid cards' sponsoring network, such as VISA, MASTERCARD,DISCOVER, or AMERICAN EXPRESS, is accepted. By comparison, closed-looptype cards are typically only honored at limited locations, such as atdesignated merchants.

SUMMARY

In accordance with one embodiment, a non-transitory computer readablemedium has instructions stored thereon which when executed by aprocessor cause the processor to receive transaction information from apoint-of-sale device, the transaction information comprising anauthorization request, a payment card account number, and a merchantidentifier. The instructions also cause the processor to determinewhether the payment card account number identifies a combination paymentcard, where the combination payment card is associated with aclosed-loop account and an open-loop account, where the closed-loopaccount is affiliated with a closed-loop merchant and the open-loopaccount is affiliated with a sponsoring network. When the payment cardaccount number identifies the combination payment card, the instructionscause the processor to determine, based on the merchant identifier,whether the transaction information is received from the closed-loopmerchant. When the received transaction information is from theclosed-loop merchant, the instructions cause the processor to determinewhether the closed-loop account has sufficient funds. The instructionsalso cause the processor to cause an authorization of sale to betransmitted to the point-of-sale device when the closed-loop account hassufficient funds. When the received transaction information is not fromthe closed-loop merchant, the instructions cause the processor tocommunicate with a sponsoring network to determine whether the open-loopaccount has sufficient funds. When the open-loop account has sufficientfunds, the instructions cause the processor to cause an authorization ofsale to be transmitted to the point-of-sale device. When the paymentcard account number is not associated with the combination payment card,the instructions cause the processor to communicate with the paymentnetwork to determine whether a payment card account identified by thepayment card account number has sufficient funds.

In accordance with another embodiment, a non-transitory computerreadable medium has instructions stored thereon which when executed by aprocessor cause the processor to receive transaction information from apoint-of-sale device, the transaction information comprising anauthorization request and a payment card account number. Theinstructions cause the processor to determine whether the payment cardaccount number is associated with a combination payment card, where thecombination payment card is associated with a closed-loop prepaidaccount that is affiliated with a merchant and a prepaid account that isaffiliated with a sponsoring network. When the payment card accountnumber is associated with a combination payment card and the transactioninformation is received from the merchant, the instructions cause theprocessor to cause an authorization to be transmitted to thepoint-of-sale device when the closed-loop prepaid account has sufficientfunds to cover the authorization request. When the payment card accountnumber is associated with a combination payment card and the transactioninformation is not received from the merchant, the instructions causethe processor to communicate with a payment network to determine whetherthe prepaid account has sufficient funds to cover the authorizationrequest. When the payment card account number is not associated with thecombination payment card, the instructions cause the processor tocommunicate with the sponsoring network to determine whether a paymentcard account associated with the payment card account number hassufficient funds to cover the authorization request.

In accordance with another embodiment, a computer-implemented methodcomprises receiving, by a computer system, transaction information froma point-of-sale device, the transaction information comprising a paymentcard account number. The method also comprises comparing the paymentaccount number to a plurality of combination payment card accountnumbers, where each of the combination payment card account numbers isassociated with an open-loop account and one or more closed-loopaccounts, wherein the one or more closed-loop accounts are associatedwith one or more closed-loop merchants. When the payment account numbermatches a combination payment card account number, determining whetherthe point-of-sale device is affiliated with any of the one or moreclosed-loop merchants. When the point-of-sale device is affiliated withone of the closed-loop merchants, causing the debiting of theclosed-loop account. When the payment account number does not match acombination payment card account number, causing the debiting of theopen-loop account.

BRIEF DESCRIPTION OF THE DRAWINGS

It is believed that certain embodiments will be better understood fromthe following description taken in conjunction with the accompanyingdrawings in which:

FIGS. 1-3 show example balances of various open-loop and closed-loopaccounts associated with combination payment cards.

FIGS. 4-6 show block diagrams of example payment systems.

FIG. 7 shows one example of a payment controller that receives andprocesses payment transactional information.

DETAILED DESCRIPTION

Various non-limiting embodiments of the present disclosure will now bedescribed to provide an overall understanding of the principles of thestructure, function, and use of the financial transaction processingsystems and methods disclosed herein. One or more examples of thesenon-limiting embodiments are illustrated in the accompanying drawings.Those of ordinary skill in the art will understand that systems andmethods specifically described herein and illustrated in theaccompanying drawings are non-limiting embodiments. The featuresillustrated or described in connection with one non-limiting embodimentmay be combined with the features of other non-limiting embodiments.Such modifications and variations are intended to be included within thescope of the present disclosure.

Reference throughout the specification to “various embodiments,” “someembodiments,” “one embodiment,” “some example embodiments,” “one exampleembodiment,” or “an embodiment” means that a particular feature,structure, or characteristic described in connection with the embodimentis included in at least one embodiment. Thus, appearances of the phrases“in various embodiments,” “in some embodiments,” “in one embodiment,”“some example embodiments,” “one example embodiment, or “in anembodiment” in places throughout the specification are not necessarilyall referring to the same embodiment. Furthermore, the particularfeatures, structures or characteristics may be combined in any suitablemanner in one or more embodiments.

As used herein, the term “prepaid account” can refer to any accountcapable of having a balance that can be funded in advance, which whenused in a financial transaction the balance can be debited. Prepaidaccounts can be associated with many instruments, such as, but notlimited to, a stored value account, a gift card account or, a payrollcard account.

As used herein, the term “prepaid card” can refer to any access deviceassociated with a prepaid account as the term is used herein. Exampleprepaid cards can include, but are not limited to, a gift card, apayroll card, a stored value card, a smart card, or a contactless card.Prepaid cards may be embodied either as a tangible medium form factor oras an electronic or virtual-type instrument provided by a merchant, aretailer, an employer, a merchant bank, an employer bank, a financialinstitution, or any other suitable type of entity. In one example, aprepaid card can be a denominated plastic card with a predeterminedmonetary amount associated with the card. In another example, a prepaidcard can be an electronic certificate with a predetermined monetaryamount associated with the certificate. In other examples, a prepaidcard may be a non-denominated card, whereby a consumer can designate thevalue to fund one or more of the associated account. Example prepaidcards may include or have associated therewith, but are not limitedthereto, one or more of the following: an account number, a card number,a personal identification number, a magnetic stripe, a bar code, and/ora contactless transaction means.

The presently disclosed embodiments are generally directed to systemsand methods for processing a transaction involving a prepaid card. Suchprepaid cards can be tied, linked or otherwise associated to both anopen-loop prepaid account and one or more closed-loop prepaid accounts.The prepaid card for use with the embodiments disclosed herein may bereferred to herein as a “combination payment card” or “combinationaccount card”, as the prepaid card is associated with a variety ofaccount types.

With regard to the open-loop prepaid account associated with thecombination payment card, the combination payment card can be used atany location where the cards' sponsoring network, such as VISA,MASTERCARD, DISCOVER, or AMERICAN EXPRESS, is accepted. The open-loopprepaid accounts of the combination payment card can be functionallysimilar to, for example, payment cards commonly referred to as generalpurpose reloadable cards. In some embodiments, the card's sponsoringnetwork can be identified on the face of the combination payment card,such as by a logo or other indicia. Generally, open-loop prepaidaccounts can be funded by a cardholder, another person, a company, agovernment agency, and so forth. These accounts are not typically linkedto a cardholder's bank account or other lines of credit. Furthermore,only funds that are loaded onto the card can be spent by the cardholder.

The closed-loop prepaid account associated with the combination paymentcard, sometimes referred to as a merchant gift card account, can be usedat one or more particular merchants that are associated with theclosed-loop prepaid account. In some embodiments, the one or moreparticular merchants that are associated with the closed-loop prepaidaccount can be identified on the face of the combination payment card.As is to be appreciated, a wide variety of merchants can be associatedwith the combination payment card, such as, without limitation,retailers, restaurants, hotels, airlines, or any other provider of goodsor services.

The cardholder can use the combination payment card for payment at avariety of merchant types. A first merchant type that can accept thecombination payment card is any merchant within the cards' sponsoringnetwork. In addition, a second merchant type that can accept thecombination payment card is any merchant associated with the closed-loopprepaid account that is linked to the combination payment card. When thecombination payment card is used by a cardholder to make a purchase at amerchant that is not associated with the closed-loop prepaid account,the combination payment card can functionally perform as an open-loopprepaid card. In other words, at those types of merchants an accountassociated with the open-loop prepaid account can be debited for thepurchase. By comparison, when the combination payment card is used tomake a purchase at a merchant that is associated with the closed-loopprepaid account, any funds available in the closed-loop prepaid accountcall be utilized to pay for, or at least partially pay for, thepurchase.

It is noted that the terms “purchase” and “merchant” are herein usedbroadly, as combination payment cards can be used to make any suitabletype of purchase from any suitable type of merchant. For example, thepurchase can be for, without limitation, goods or services from a brickand mortar store, an e-commerce website, a public utility, and so forth.Combination payment cards can also, in certain circumstance, be used tomake loan payments, credit card payments, and so forth. All suchsuitable implementations and variations are intended to be covered bythe present disclosure.

In some embodiments, when making a purchase using the closed-loopprepaid account, if the available funds in the closed-loop prepaidaccount do not cover the full purchase amount, the payment for thedeficiency can be sought from the open-loop prepaid account that isassociated with the combination payment card. Alternatively, when theavailable funds in the closed-loop prepaid account do not cover the fullpurchase amount, the cardholder can subsidize the deficiency usinganother form of payment, such as a cash payment.

In some embodiments, for purchases transacted at a merchant associatedwith the closed-loop prepaid account, the cardholder can be prompted atthe point-of-sale terminal to identify which of the accounts associatedwith the combination payment card should be debited. In other words, thecardholder can be prompted to determine if the purchase should becharged to the cardholder's open-loop prepaid account or charged to thecardholder's closed-loop prepaid account.

The combination payment card can be assigned a card number, such as anIssuer Notification Number (IIN) or a Bank Identification Number (BIN),which is provided on the face of the card. The combination payment cardcan comprise a variety of markings or identification means known in theart, such as a magnetic stripe, a bar code, a QR code, and/or acontactless transaction means for conveying the card number to apoint-of-sale terminal. The card number can be formatted or structuredso that the combination payment card can be used by a cardholder to makepurchases using the associated open-loop prepaid account at anypoint-of-sale location (including both brick and mortar locations andonline locations) within the sponsoring network. Thus, with respect tomerchant processors (sometimes referred to as acquirers) that performpayment processing for merchants that are not associated with theclosed-loop prepaid account of the combination payment card, thecombination payment card is functionally similar to a standard prepaidopen-loop card. Merchants that are not associated with the closed-loopprepaid account of the combination payment card are sometimes referredto herein as “open-loop merchants.” When the combination payment card isused to make a purchase at one or more merchants associated with theclosed-loop prepaid account with the combination payment card, theassociated closed-loop prepaid account can be utilized. Merchants thatare associated with the closed-loop prepaid account of the combinationpayment card are sometimes referred to herein as “closed-loopmerchants.” Thus, the single card number assigned to the combinationpayment card can trigger the debiting of an open-loop prepaid account ora closed-loop prepaid account, depending on the merchant from whichauthorization is sought.

As described in more detail below, an acquirer that performs paymentprocessing for one of the closed-loop merchants can make thedetermination as to which payment processing technique should be used inaccordance with one or more transaction processing rules. Thetransaction processing rules can be based on, for example, the cardnumber that the acquirer receives during a payment transaction from thepoint-of-sale device. Acquirers that perform payment processing foropen-loop merchants may be generally unaware that the payment card iseven a combination payment card or is linked to any closed-loopaccounts.

For purposes of illustration, FIGS. 1-3 show the impact of variousevents on the balances of the various open-loop and closed-loop prepaidaccounts that are associated with example combination payment cards. Asis to be readily appreciated, the various balances of the combinationpayment cards presented in FIGS. 1-3 are merely for illustrationpurposes.

Referring first to FIG. 1 , a combination payment card 100 having apayment card account number 101 is issued at event 102 that isassociated with, linked to, or otherwise affiliated with an open-loopprepaid account and a closed-loop prepaid account (e.g., merchant giftcard account). For the purposes of illustration, the closed-loop prepaidaccount is affiliated with Merchant A. At issuance, the combinationpayment card 100 has an open-loop prepaid account balance of $50.00 anda closed-loop prepaid account balance of $5.00. In some embodiments, theinitial value of the closed-loop prepaid account can be substantiallyequal to an activation fee that is associated with the combinationpayment card 100. At event 104, the cardholder makes a $10.00 purchaseat Merchant B. As shown, the prepaid account open-loop prepaid accountis debited to reduce the balance to $40.00. The balance of theclosed-loop prepaid account remains the same. At event 106, thecardholder makes a $3.00 purchase at Merchant A. As shown, theclosed-loop prepaid account is debited to reduce the balance to $2.00.The balance of the open-loop prepaid account prepaid remains the same.At event 108, the cardholder makes a $30.00 purchase at Merchant C. Theopen-loop prepaid account prepaid is debited to reduce the balance to$10.00. At event 110, the cardholder makes a $5.00 purchase at MerchantA. The available balance in the gift card account is $2.00. Accordingly,the available $2.00 in the gift card account is first applied to thetransaction thereby reducing the balance in the gift card account tozero. The $3.00 deficiency, which is amount still due to cover thetransaction at event 110, is then debited from the open-loop prepaidaccount prepaid to reduce the balance to $7.00.

Referring now to FIG. 2 , a combination payment card 200 having apayment card account number 201 is issued at event 202 that isassociated with, linked to, or otherwise affiliated with an open-loopprepaid account and two different closed-loop accounts (sometimesreferred to as gift card accounts), namely a Merchant A closed-loopaccount and a Merchant B closed-loop account. As is to be appreciated,while two affiliated gift card accounts are illustrated, any suitablenumber of closed-loop prepaid accounts can be affiliated with thecombination payment card 200. At issuance, the combination payment card200 has an open-loop prepaid account balance of $100.00, a Merchant Agift card account balance of $20.00, and a Merchant B gift card accountbalance of $5.00. At event 204, the cardholder makes a $70.00 purchaseat Merchant C. As shown, the open-loop prepaid account prepaid isdebited to reduce the balance to $30.00. The balances of the closed-loopprepaid accounts remain the same. At event 206, the cardholder makes a$5.00 purchase at Merchant B. As shown, the Merchant B gift card accountis debited to reduce the balance to zero. The balances of the open-loopprepaid account prepaid and Merchant A gift card account remain thesame. At event 208, the cardholder makes a $15.00 purchase at MerchantA. The Merchant A gift card account balance is debited to reduce thebalance to $5.00. Similar to combination payment card 100, a deficiencyof payment due from either of the closed-loop prepaid accounts can besought from the open-loop prepaid account prepaid. In some embodiments,a deficiency of payment due from one of the closed-loop prepaid accountscan be sought from the other closed-loop prepaid accounts linked to thecombination payment card

Referring now to FIG. 3 , a combination payment card 300 having apayment card account number 301 is issued at event 302 that isassociated with, linked to, or otherwise affiliated with an open-loopprepaid account prepaid and a pooled gift card account. In theillustrated embodiment, the pooled gift card account is tied to MerchantA and Merchant B such that purchases at either Merchant A or Merchant Bcan be paid from the pooled gift card account. As is to be appreciated,while two merchants are shown affiliated with the pooled gift cardaccount, any suitable number of merchants can be affiliated with thepooled gift card account of combination payment card 300. At issuance,the combination payment card 300 has an open-loop prepaid accountbalance of $50.00 and a pooled gift card account balance of $50.00. Atevent 304, the cardholder makes a $10.00 purchase at Merchant A. Asshown, the pooled gift card account balance is debited to reduce thebalance to $40.00. The balance of the open-loop prepaid account remainsthe same. At event 306, the cardholder makes a $20.00 purchase atMerchant C. As shown, the open-loop prepaid account is debited to reducethe balance to $30.00. At event 308, the cardholder makes a $50.00purchase at Merchant B. The available balance in the pooled gift cardaccount is $40.00. Accordingly, the available $40.00 in the pooled giftcard account is applied to the transaction thereby reducing the balancein the gift card account to zero. The $10.00 deficiency, which is amountstill due to cover the transaction at event 380, is debited from theopen-loop prepaid account balance to reduce the balance to $20.00.

FIG. 4 shows a block diagram 400 of one example payment system. Acombination payment card 401 shown in FIG. 4 , for the purposes ofillustration, is associated with an open-loop prepaid account associatedwith a sponsoring network and a closed-loop account associated with amerchant. The combination payment card 401 can be functionally similarto the combination payment card 100 illustrated in FIG. 1 . When acardholder of the combination payment card 401 seeks to use thecombination payment card 401 for a payment transaction at merchant 402,account information is received by the point-of-sale (POS) device 404.The account information can be, for example, the card number or otheridentifying indicia. The account information can be electronicallyprovided to the acquirer 406 using techniques known in the art in theform of an authentication request. Additional information can beconveyed to the acquirer 406 along with the account information. Suchadditional information can include, for example, such as a merchantidentification (MID), a terminal identification, other merchant-specificidentifying indicia, and/or other transaction-related data. Thetransaction-related data can include details about the transaction, suchas purchase price, for example. The information received from the POSdevice 404 can be referred to generally as transaction data.

Upon receiving the transaction data, the acquirer 406 can determine theappropriate treatment for the authorization request. Namely, usingvarious transaction processing rules described herein, the acquirer 406can determine whether to authorize the purchase as an open-looptransaction, a closed-loop transaction, or a combination of open-loopand closed-loop transactions. At decision 408, the acquirer 406determines if the card associated with the transaction is a combinationpayment card. If the card is not a combination payment card, theacquirer 406 can process the transaction as an open-loop transaction, asdenoted by block 410, or otherwise process the transaction in accordancewith the type of card supplied by the cardholder. The transaction datacan then be sent through the payment network 412, as is known in theart, and an authorization 414 (assuming approval of the request by thepayment network) returned to the POS device 404. As is to be appreciatedby those skilled in the art, the payment network 412 illustrated in FIG.4 includes the sponsoring network associated with the combinationpayment card 401.

The determination as to whether the card associated with the transactionis a combination payment card can be based on, for example, the accountnumber received from the POS device 404. In some embodiments,determining whether the card associated with the transaction is acombination payment card includes cross-referencing at least a portionof the account number against a known list of combination payment cardaccount numbers. In other words, the acquirer 406 can identify a rangeof account numbers that are to be assigned to combination payment cards.When a combination payment cards is issued, it is given an accountnumber from within that range of account numbers. Other techniques canalso be used for providing indicia to the combination payment card thatcan subsequently be used by the acquirer 406 to flag the card as acombination payment card. For example, a particular sequence of numberscan be used in the account number. In some embodiments, a database ofknown combination payment card account numbers is maintained by anacquirer or other entity. In any event, since a combination payment cardcan be used for transactions at any open-loop merchant within thesponsoring network, the account number may typically follow standardnumbering conventions.

Once it is determined by the acquirer 406 that the card 401 is acombination payment card, it is determined at 416 if the transaction isfrom a merchant that is associated with the closed-loop prepaid accounttied to the card 401. In the illustrated embodiment, for example, it isdetermined if the merchant 402 is the gift card merchant tied to theaccount. If merchant 402 is not the gift card merchant tied to theaccount, the acquirer 406 can process the transaction as an open-looptransaction, as denoted by block 410. If merchant 402 is determined tobe the gift card merchant tied to the account, the acquirer 406 canprocess the transaction as a closed-loop transaction, as denoted byblock 418.

In some embodiments, determining whether the merchant associated withthe transaction is the merchant tied to the combination payment cardincludes cross-referencing merchant identifying indicia received fromthe POS device 404 to merchant-related data stored by the acquirer 406.For example, the data stream received from the POS device 404 caninclude a MID. After determining that the card 401 is a combinationpayment card, the incoming MID can be cross-referenced to a list of oneor more MIDs associated with that combination payment card. It is noted,however, that the present disclosure is not limited to the use of MIDs,as other merchant identifying indicia can be used by the acquirer 406.In one embodiment, for example, a terminal ID received by the acquirer406 can be used as merchant identifying indicia. In this way, thecombination payment card can be used as a closed-loop card at onlycertain merchant terminals. The terminal ID received during thetransaction can be cross-referenced against a list of acceptableterminal IDs that have been previously identified. Only if the terminalID is found within the list of acceptable terminal IDs does the acquirer406 process the transaction as a closed-loop transaction. Thus, usingterminal IDs, a merchant can control which stores, or even which POSdevices within a single retail location, can process the card 401 as amerchant gift card.

Once the acquirer 406 has determined that the card 401 is a combinationpayment card and the transaction is occurring at the merchant that isassociated with the closed-loop prepaid account, it is determined at 422if the account balance of the gift card account is sufficient to coverthe amount requested. In one embodiment, an authorization request isused to determine if the available account balance of the associatedclosed-loop prepaid account covers the amount requested. If the accountbalance is sufficient to cover the amount requested, an authorization423 can be sent to the POS device 404. The closed-loop prepaid accountbalance associated with the card 401 can also be reduced by the purchaseamount authorized. If, however, the closed-loop prepaid account balanceis not sufficient to cover the amount requested, a partial approval canbe returned in response to the authorization request. The remainingbalance of the requested amount can be treated as an open-looptransaction, as illustrated by block 424. This balance can be sentthrough the payment network 412, as described above. Thus, if theauthorization amount requested from the POS device 404 exceeds theavailable balance in the closed-loop account associated with the card401, the acquirer 406 can seek the deficiency from the open-loop prepaidaccount that is associated with the card 401. If the open-loop prepaidaccount that is associated with the card 401 does not have sufficientfunds, the cardholder may be requested to supply additional types offunds to ultimately complete the transaction.

FIG. 5 shows a block diagram 500 of another example payment system. Acombination payment card 501 illustrated in FIG. 5 , for the purposes ofillustration, is associated with an open-loop prepaid account, aclosed-loop prepaid account associated with Merchant A, and aclosed-loop prepaid account associated with Merchant B. The combinationpayment card 501 can be functionally similar to the combination paymentcard 200 shown in FIG. 2 . When a cardholder of the combination paymentcard 501 seeks to use the combination payment card 501 for a paymenttransaction at merchant 502, account information is received by thepoint-of-sale (POS) device 504. The account information can beelectronically provided to the acquirer 506 using techniques known inthe art in the form of an authentication request. Similar to the blockdiagram 400 described above, additional information can be conveyed tothe acquirer 506 along with the account information. Such additionalinformation can include, for example, such as a MID, a terminal ID,other merchant-specific identifying indicia, and/or othertransaction-related data.

Upon receiving the transaction data, the acquirer 506 can determine theappropriate treatment for the authorization request. Namely, usingvarious transaction processing rules, the acquirer 506 can determinewhether to authorize the purchase as an open-loop transaction, aclosed-loop transaction, or a transaction comprising an open-loopcomponent and a closed-loop component. At decision 508, the acquirer 506determines if the card associated with the transaction is a combinationpayment card. If the card is not a combination payment card, theacquirer 506 can process the transaction as an open-loop transactionusing payment network 512, as is known in the art. The transactioninformation can then be sent through the payment network 512 and anauthorization 514 returned to the POS device 504.

Similar to the decision 408 described above with regard to FIG. 4 , thedetermination at 508 as to whether the card associated with thetransaction is a combination payment card can be based on the accountnumber received from the POS device 504. Once it is determined by theacquirer 506 that the card 501 is a combination payment card, it isdetermined at 516 if the transaction is at a first merchant (illustratedas Merchant A) associated with the closed-loop prepaid account tied tothe card 501. If not, it is determined at 517 if the transaction is at asecond merchant (illustrated as Merchant B) associated with theclosed-loop prepaid account tied to the card 501. As described abovewith regard to decision 416 in FIG. 4 , determining whether the merchantassociated with the transaction is the merchant tied to the combinationpayment card at decision points 516, 517 can include cross-referencingmerchant identifying indicia received from the POS device 504 tomerchant-related data stored by the acquirer 506. While two merchantsare shown associated with a combination payment card in FIG. 5 , anysuitable number of merchants can be associated with the combinationpayment card. In any event, if is determined at 517 that merchant 502 isnot tied to any gift card account associated with the card 501, theacquirer 506 can process the transaction as an open-loop transaction.The transaction details can be sent to a payment network 512 andauthorization 514 returned to the POS device 504.

Referring again to decision 516, if the merchant 502 is determined to bea gift card merchant tied to the account, the acquirer 506 can processthe transaction as a closed-loop transaction. At 522, it is determinedif the account balance of the closed-loop prepaid account associatedwith Merchant A is sufficient to cover the amount requested. In oneembodiment an authorization request is used to determine if theavailable account balance of the Merchant A closed-loop prepaid accountcovers the amount requested. If the account balance is sufficient tocover the amount requested, an authorization 523 can be sent to the POSdevice 504. The Merchant A closed-loop prepaid account balanceassociated with the card 501 can also be reduced by the amountauthorized. If the account balance in the Merchant A closed-loop prepaidaccount is not sufficient to cover the amount requested, a partialapproval can be returned in response to the authorization request. Theremaining balance of the requested amount can be treated as an open-looptransaction. The amount of deficiency can be sent through the paymentnetwork 512.

Referring again to decision 517, if the merchant 502 is determined to bea gift card merchant tied to the account, the acquirer 506 can processthe transaction as a closed-loop transaction. At 523, it is determinedif the account balance of the closed-loop prepaid account associatedwith Merchant B is sufficient to cover the amount requested. Anauthorization request can be used to determine if the available accountbalance of the Merchant B closed-loop prepaid account is sufficient tocover the amount requested. If the account balance is sufficient tocover the amount requested, authorization 523 can be sent to the POSdevice 504. The Merchant B closed-loop prepaid account balanceassociated with the card 501 can be reduced by the amount authorized.If, however, the account balance in the Merchant B closed-loop prepaidaccount is not sufficient to cover the amount requested, a partialapproval can be returned and the amount of the deficiency can be treatedas an open-loop transaction. The amount of deficiency can be sentthrough the payment network 512. If the open-loop prepaid account thatis associated with the card 501 does not have sufficient funds, thecardholder may be requested to supply additional types of funds toultimately complete the transaction.

FIG. 6 shows a block diagram 600 of yet another example payment system.A combination payment card 601 illustrated in FIG. 6 , for the purposesof illustration, is associated with an open-loop prepaid account and apooled closed-loop account. The pooled closed-loop account can beassociated with any number or types of merchants. For the purposes ofillustration, the pooled closed-loop account is associated with MerchantA and Merchant B. The combination payment card 601 can be functionallysimilar to the combination payment card 300 shown in FIG. 3 . When acardholder of the combination payment card 601 seeks to use thecombination payment card 601 for a payment transaction at merchant 602,account information is received by the point-of-sale (POS) device 604.The account information can be electronically provided to the acquirer606 using transmission techniques known in the art in the form of anauthentication request. Similar to the block diagram 400 describedabove, additional information can be conveyed to the acquirer 606 alongwith the account information. Such additional information can include,for example, such as a MID, a terminal ID, other merchant-specificidentifying indicia, and/or other transaction-related data.

Upon receiving the transaction data, the acquirer 606 can determine theappropriate treatment for the authorization request. Namely, usingvarious transaction processing rules, the acquirer 606 can determine toauthorize the purchase as an open-loop transaction, a closed-looptransaction, or a transaction comprising an open-loop component and aclosed-loop component. At decision 608, the acquirer 606 determines ifthe card associated with the transaction is a combination payment card.If the card is not a combination payment card, the acquirer 606 canprocess the transaction as an open-loop transaction using paymentnetwork 612, as is known in the art. The transaction information canthen be sent through the payment network 612 and an authorization 614returned to the POS device 604.

Similar to the decision 408 described above with regard to FIG. 4 , thedetermination at 608 as to whether the card associated with thetransaction is a combination payment card can be based on the accountnumber received from the POS device 604. Once it is determined by theacquirer 606 that the card 601 is a combination payment card, it isdetermined at 616 if the transaction is at a first merchant (illustratedas Merchant A) or at a second merchant (illustrated as Merchant B), bothof which are associated with the pooled closed-loop prepaid account tiedto the card 601. As described above with regard to decision 416 in FIG.4 , determining whether the merchant associated with the transaction isthe merchant tied to the combination payment card at decision points 616can include cross-referencing merchant identifying indicia received fromthe POS device 604 to merchant-related data. While two merchants areshown associated a combination payment card in FIG. 6 , any suitablenumber of merchants can be associated with the combination payment card.In any event, if it is determined at 616 that merchant 602 is not a giftcard merchant tied to the pooled gift card account associated with thecard 601, the acquirer 606 can process the transaction as an open-looptransaction. The transaction details can be sent to a payment network612 and authorization 614 returned to the POS device 604.

If the merchant 602 is determined at decision 616 to be a gift cardmerchant tied to the pooled gift card account, the acquirer 606 canprocess the transaction as a closed-loop transaction. At 622, it isdetermined if the account balance of the closed-loop prepaid accountassociated with merchant 602 is sufficient to cover the amountrequested. Similar to the embodiments described above, an authorizationrequest can be used to determine if the available account balance of thepooled closed-loop prepaid account covers the amount requested. If theaccount balance is sufficient to cover the amount requested,authorization 623 can be sent to the POS device 604. The pooled giftcard account balance associated with the card 601 can be reduced by theamount authorized. If the account balance in the pooled gift cardaccount is not sufficient to cover the amount requested, a partialapproval can be returned in response to the authorization request. Theremaining balance of the requested amount can be sent through thepayment network 612 as an open-loop transaction, as illustrated in FIG.6 . If the open-loop prepaid account that is associated with the card601 does not have sufficient funds, the cardholder may be requested tosupply additional types of funds to ultimately complete the transaction.

FIG. 7 shows one example embodiment of a payment controller 700 thatreceives and processes payment transactional information. The paymentcontroller 700 can be used to execute the transaction rules of theacquirers 406, 506, and 606 of FIGS. 4-6 , described above. The paymentcontroller 700 may be provided using any suitable processor-based deviceor system, such as a personal computer, laptop, server, mainframe, or acollection (e.g., network) of multiple computers, for example. Thepayment controller 700 may include one or more processors 702 and one ormore computer memory units 704. For convenience, only one processor 702and only one memory unit 704 are shown in FIG. 7 . The processor 702 mayexecute software instructions 706 stored on the memory unit 704. Theprocessor 702 may be implemented as an integrated circuit (IC) havingone or multiple cores. The memory 704 may include volatile and/ornon-volatile memory units. Volatile memory units may include randomaccess memory (RAM), for example. Non-volatile memory units may includeread only memory (ROM), for example, as well as mechanical non-volatilememory systems, such as, for example, a hard disk drive, an optical diskdrive, etc. The RANI and/or ROM memory units may be implemented asdiscrete memory ICs, for example. Data used by the payment controller700 may be from various sources, such as point-of-sale device 708database. The payment controller 700 can also be in communication withvarious payment networks 710. The payment network 710 can generallycomprise, for example, the sponsoring network of the combination paymentcards described herein, the issuer processor, the issuer bank, and anyother intermediaries that process financial transactions.

In general, it will be apparent to one of ordinary skill in the art thatat least some of the embodiments described herein may be implemented inmany different embodiments of software, firmware, and/or hardware. Thesoftware and firmware code may be executed by a processor or any othersimilar computing device. The software code or specialized controlhardware that may be used to implement embodiments is not limiting. Forexample, embodiments described herein may be implemented in computersoftware using any suitable computer software language type, using, forexample, conventional or object-oriented techniques. Such software maybe stored on any type of suitable computer-readable medium or media,such as, for example, a magnetic or optical storage medium. Theoperation and behavior of the embodiments may be described withoutspecific reference to specific software code or specialized hardwarecomponents. The absence of such specific references is feasible, becauseit is clearly understood that artisans of ordinary skill would be ableto design software and control hardware to implement the embodimentsbased on the present description with no more than reasonable effort andwithout undue experimentation.

Moreover, the processes associated with the present embodiments may beexecuted by programmable equipment, such as computers or computersystems and/or processors. Software that may cause programmableequipment to execute processes may be stored in any storage device, suchas, for example, a computer system (nonvolatile) memory, an opticaldisk, magnetic tape, or magnetic disk. Furthermore, at least some of theprocesses may be programmed when the computer system is manufactured orstored on various types of computer-readable media.

It can also be appreciated that certain process aspects described hereinmay be performed using instructions stored on a computer-readable mediumor media that direct a computer system to perform the process steps. Acomputer-readable medium may include, for example, memory devices suchas diskettes, compact discs (CDs), digital versatile discs (DVDs),optical disk drives, or hard disk drives. A computer-readable medium mayalso include memory storage that is physical, virtual, permanent,temporary, semipermanent, and/or semitemporary.

A “computer,” “computer system,” “host,” “server,” or “processor” maybe, for example and without limitation, a processor, microcomputer,minicomputer, server, mainframe, laptop, personal data assistant (PDA),wireless e-mail device, cellular phone, pager, processor, fax machine,scanner, or any other programmable device configured to transmit and/orreceive data over a network. Computer systems and computer-based devicesdisclosed herein may include memory for storing certain software modulesused in obtaining, processing, and communicating information. It can beappreciated that such memory may be internal or external with respect tooperation of the disclosed embodiments. The memory may also include anymeans for storing software, including a hard disk, an optical disk,floppy disk, ROM (read only memory), RAM (random access memory), PROM(programmable ROM), EEPROM (electrically erasable PROM) and/or othercomputer-readable media. Non-transitory computer-readable media, as usedherein, comprises all computer-readable media except for a transitory,propagating signals.

In various embodiments disclosed herein, a single component may bereplaced by multiple components and multiple components may be replacedby a single component to perform a given function or functions. Exceptwhere such substitution would not be operative, such substitution iswithin the intended scope of the embodiments. Any servers describedherein, for example, may be replaced by a “server farm” or othergrouping of networked servers (such as server blades) that are locatedand configured for cooperative functions. It can be appreciated that aserver farm may serve to distribute workload between/among individualcomponents of the farm and may expedite computing processes byharnessing the collective and cooperative power of multiple servers.Such server farms may employ load-balancing software that accomplishestasks such as, for example, tracking demand for processing power fromdifferent machines, prioritizing and scheduling tasks based on networkdemand and/or providing backup contingency in the event of componentfailure or reduction in operability.

The computer systems may comprise one or more processors incommunication with memory (e.g., RAM or ROM) via one or more data buses.The data buses may carry electrical signals between the processor(s) andthe memory. The processor and the memory may comprise electricalcircuits that conduct electrical current. Charge states of variouscomponents of the circuits, such as solid state transistors of theprocessor(s) and/or memory circuit(s), may change during operation ofthe circuits.

Some of the figures may include a flow diagram. Although such figuresmay include a particular logic flow, it can be appreciated that thelogic flow merely provides an exemplary implementation of the generalfunctionality. Further, the logic flow does not necessarily have to beexecuted in the order presented unless otherwise indicated. In addition,the logic flow may be implemented by a hardware element, a softwareelement executed by a computer, a firmware element embedded in hardware,or any combination thereof.

The foregoing description of embodiments and examples has been presentedfor purposes of illustration and description. It is not intended to beexhaustive or limiting to the forms described. Numerous modificationsare possible in light of the above teachings. Some of thosemodifications have been discussed, and others will be understood bythose skilled in the art. The embodiments were chosen and described inorder to best illustrate principles of various embodiments as are suitedto particular uses contemplated. The scope is, of course, not limited tothe examples set forth herein, but can be employed in any number ofapplications and equivalent devices by those of ordinary skill in theart. Rather it is hereby intended the scope of the invention to bedefined by the claims appended hereto.

1-20. (canceled)
 21. A system for processing online transactionsutilizing a combination payment card, the system comprising: one or morecomputer memory units storing instructions for utilizing the combinationpayment card associated with an open-loop account, a closed-loopaccount, or a pooled closed-loop account; and one or more processorsconfigured to execute the instructions to perform operations comprising:receiving transaction data from a point-of-sale device configured toaccept the combination payment card; determining the combination paymentcard is associated with the open-loop account, the closed-loop account,and/or the pooled closed-loop account; determining the transaction datais received from an open-loop merchant associated with the open-loopaccount or a closed-loop merchant associated with the closed-loopaccount or the pooled closed-loop account; determining the open-loopaccount, the closed-loop account, or the pooled closed-loop account havesufficient funds to complete an online transaction; and generating afull approval or a partial approval of the online transaction in thepoint-of-sale device based, at least in part, on sufficiency of thefunds in the open-loop account, the closed-loop account, or the pooledclosed-loop account.
 22. The system of claim 21, wherein the transactiondata comprises account information of the combination payment card and aterminal identifier of the point-of-sale device.
 23. The system of claim22, the operations further comprising: comparing the account informationwith a known list of a plurality of combination payment card accounts todetermine the combination payment card is associated with the open-loopaccount and the closed-loop account or the pooled closed-loop account.24. The system of claim 23, the operations further comprising: comparingthe terminal identifier of the point-of-sale device to terminalidentifiers of a plurality of point-of-sale devices associated with aplurality of merchants to determine the transaction data is affiliatedwith the open-loop merchant or the closed-loop merchant.
 25. The systemof claim 21, the operations further comprising: determining thetransaction data is affiliated with the open-loop merchant associatedwith the open-loop account; and generating the full approval of theonline transaction in the point-of-sale device upon determining theopen-loop account has sufficient funds to complete the onlinetransaction, or generating the partial approval of the onlinetransaction to the point-of-sale device upon determining the open-loopaccount has insufficient funds, wherein the partial approval includes arequest for additional funds to cover an amount of deficiency tocomplete the online transaction.
 26. The system of claim 21, wherein theclosed-loop account is affiliated with a respective closed-loopmerchant, and wherein the pooled closed-loop account includes aplurality of closed-loop accounts associated with a plurality ofrespective closed-loop merchants.
 27. The system of claim 26, theoperations further comprising: determining the transaction data isreceived from the closed-loop merchant associated with the closed-loopaccount; and generating the full approval of the online transaction tothe point-of-sale device upon determining the closed-loop account hassufficient funds to complete the online transaction, or generating thefull approval of the online transaction to the point-of-sale device upondetermining the closed-loop account has insufficient funds, and theopen-loop account has sufficient funds to cover an amount of deficiencyto complete the online transaction.
 28. The system of claim 27, theoperations further comprising: authorizing at least one portion of theonline transaction as the open-loop transaction to cover the amount ofdeficiency in the closed-loop account.
 29. The system of claim 26, theoperations further comprising: determining the transaction data isreceived from the closed-loop merchant associated with the pooledclosed-loop account; and generating the full approval of the onlinetransaction in the point-of-sale device upon determining at least oneclosed-loop account of the pooled closed-loop account has sufficientfunds to complete the transaction, or generating the full approval ofthe online transaction in the point-of-sale device upon determining theat least one closed-loop account of the pooled closed-loop account hasinsufficient funds, and at least one other closed-loop account of thepooled closed-loop account has sufficient funds to cover an amount ofdeficiency to complete the online transaction.
 30. The system of claim29, the operations further comprising: generating the full approval ofthe online transaction in the point-of-sale device upon determining thepooled closed-loop account has insufficient funds to complete the onlinetransaction, and the open-loop account has sufficient funds to cover theamount of deficiency of the pooled closed-loop account, wherein at leastone portion of the online transaction is authorized as the open-looptransaction to cover the amount of deficiency in the pooled closed-loopaccount.
 31. A computer-implemented method for processing onlinetransactions utilizing a combination payment card, the methodcomprising: receiving transaction data from a point-of-sale deviceconfigured to accept the combination payment card, wherein thetransaction data comprises account information of the combinationpayment card and a terminal identifier of the point-of-sale device;determining the combination payment card is associated with an open-loopaccount, a closed-loop account, and/or a pooled closed-loop account;determining the transaction data is received from an open-loop merchantassociated with the open-loop account or a closed-loop merchantassociated with the closed-loop account or the pooled closed-loopaccount; determining the open-loop account, the closed-loop account, orthe pooled closed-loop account have sufficient funds to complete anonline transaction; and generating a full approval or a partial approvalof the online transaction in the point-of-sale device based, at least inpart, on sufficiency of the funds in the open-loop account, theclosed-loop account, or the pooled closed-loop account.
 32. Thecomputer-implemented method of claim 31, the method further comprising:comparing the account information with a known list of a plurality ofcombination payment card accounts to determine the combination paymentcard is associated with the open-loop account and the closed-loopaccount or the pooled closed-loop account; and comparing the terminalidentifier of the point-of-sale device to terminal identifiers of aplurality of point-of-sale devices associated with a plurality ofmerchants to determine the transaction data is affiliated with theopen-loop merchant or the closed-loop merchant.
 33. Thecomputer-implemented method of claim 31, the method further comprising:determining the transaction data is affiliated with the open-loopmerchant associated with the open-loop account; and generating the fullapproval of the online transaction in the point-of-sale device upondetermining the open-loop account has sufficient funds to complete theonline transaction, or generating the partial approval of the onlinetransaction to the point-of-sale device upon determining the open-loopaccount has insufficient funds, wherein the partial approval includes arequest for additional funds to cover an amount of deficiency tocomplete the online transaction.
 34. The computer-implemented method ofclaim 31, wherein the closed-loop account is affiliated with arespective closed-loop merchant, and wherein the pooled closed-loopaccount includes a plurality of closed-loop accounts associated with aplurality of respective closed-loop merchants.
 35. Thecomputer-implemented method of claim 34, the method further comprising:determining the transaction data is received from the closed-loopmerchant associated with the closed-loop account; and generating thefull approval of the online transaction to the point-of-sale device upondetermining the closed-loop account has sufficient funds to complete theonline transaction, or generating the full approval of the onlinetransaction to the point-of-sale device upon determining the closed-loopaccount has insufficient funds, and the open-loop account has sufficientfunds to cover an amount of deficiency to complete the onlinetransaction.
 36. The computer-implemented method of claim 34, the methodfurther comprising: determining the transaction data is received fromthe closed-loop merchant associated with the pooled closed-loop account;and generating the full approval of the online transaction in thepoint-of-sale device upon determining at least one closed-loop accountof the pooled closed-loop account has sufficient funds to complete thetransaction, or generating the full approval of the online transactionin the point-of-sale device upon determining the at least oneclosed-loop account of the pooled closed-loop account has insufficientfunds, and at least one other closed-loop account of the pooledclosed-loop account has sufficient funds to cover an amount ofdeficiency to complete the online transaction.
 37. Thecomputer-implemented method of claim 36, the method further comprising:determining the pooled closed-loop account has insufficient funds tocomplete the online transaction, and the open-loop account hassufficient funds to cover the amount of deficiency of the pooledclosed-loop account; and authorizing at least one portion of the onlinetransaction as the open-loop transaction to cover the amount ofdeficiency in the pooled closed-loop account.
 38. A non-transitorycomputer-readable medium storing instructions for processing onlinetransactions utilizing a combination payment card, the instructions,when executed by one or more processors, causing the one or moreprocessors to perform operations comprising: receiving transaction datafrom a point-of-sale device configured to accept the combination paymentcard, wherein the transaction data comprises account information of thecombination payment card and a terminal identifier of the point-of-saledevice; determining the combination payment card is associated with anopen-loop account, a closed-loop account, and/or a pooled closed-loopaccount; determining the transaction data is received from an open-loopmerchant associated with the open-loop account or a closed-loop merchantassociated with the closed-loop account or the pooled closed-loopaccount; determining the open-loop account, the closed-loop account, orthe pooled closed-loop account have sufficient funds to complete anonline transaction; and generating a full approval or a partial approvalof the online transaction in the point-of-sale device based, at least inpart, on sufficiency of the funds in the open-loop account, theclosed-loop account, or the pooled closed-loop account.
 39. Thecomputer-readable medium of claim 38, the operations further comprising:determining the transaction data is received from the closed-loopmerchant associated with the closed-loop account; and generating thefull approval of the online transaction to the point-of-sale device upondetermining the closed-loop account has sufficient funds to complete theonline transaction, or generating the full approval of the onlinetransaction to the point-of-sale device upon determining the closed-loopaccount has insufficient funds, and the open-loop account has sufficientfunds to cover an amount of deficiency to complete the onlinetransaction, wherein at least one portion of the online transaction isauthorized as the open-loop transaction to cover the amount ofdeficiency in the closed-loop account.
 40. The computer-readable mediumof claim 38, the operations further comprising: determining thetransaction data is received from the closed-loop merchant associatedwith the pooled closed-loop account; and generating the full approval ofthe online transaction in the point-of-sale device upon determining atleast one closed-loop account of the pooled closed-loop account hassufficient funds to complete the transaction; or generating the fullapproval of the online transaction in the point-of-sale device upondetermining the at least one closed-loop account of the pooledclosed-loop account has insufficient funds, and at least one otherclosed-loop account of the pooled closed-loop account has sufficientfunds to cover an amount of deficiency to complete the onlinetransaction; or generating the full approval of the online transactionin the point-of-sale device upon determining the pooled closed-loopaccount has insufficient funds to complete the online transaction, andthe open-loop account has sufficient funds to cover the amount ofdeficiency of the pooled closed-loop account, wherein at least oneportion of the online transaction is authorized as the open-looptransaction to cover the amount of deficiency in the pooled closed-loopaccount.